Nigeria's markets feel Brexit hangover

by Reuters 0

LAGOS (Reuters) – Nigerian shares fell on Monday as local funds sold on concerns that Britain’s vote to leave the European Union may slow foreign interest in the market, traders said.

The main stock index shed 2.2 percent to 29,982 points by 1252 GMT, dragged down by banking shares, which fell 3.7 percent while consumer and oil stocks each fell 2.1 percent.

Nigeria’s stock market rallied more than 8 percent last week, fuelled by investors hoping that a central bank reform to interbank currency trading would lure back foreign funds.

READ: Brexit and Africa: Time to panic or “keep calm and carry on”?

However, Britain’s decision to leave the EU in last Thursday’s referendum has sent further shockwaves through financial markets on Monday, despite efforts by the country’s leaders to bring calm.

“The Brexit fever trickled down into our market, but the fall today is looking like profit taking,” one stockbroker said.

“Brexit may slow the pace of foreign investors,” he said

Quitting the EU could cost Britain access to the EU’s single market and means it will need to seek new trade accords with countries around the world.

The biggest fallers on the Lagos bourse were FCMB Group which shed 8.33 percent, while Zenith Bank and Guinness Nigeria were each off by 5 percent.


(Reporting by Chijioke Ohuocha; Editing by Alexander Smith)